Stocks in Asia and Europe fell as the Iran war escalated and oil prices surged above $100 a barrel. However, Wall Street rallied and oil later sank. The surge in oil prices has put central banks in a position they face, either increasing rates or taking a more dovish stance due to rising unemployment and potential recession. The impact on the economy will be severe, with rising borrowing costs and rising inflation expected to impact consumer inflation. China has already capped fuel prices and South Korea is considering doing so, and Japan may also consider releasing its own crude.